HDFC Life Dec quarter net profit up 45% at Rs 174 crore

The company's net profit (based on IGAAP standards) was at Rs 120 crore in the same period last fiscal. (Photo: Reuters)

HDFC Life on Wednesday reported a 45 per cent rise in net profit at Rs 174 crore for the third quarter ended December. HDFC Standard Life Insurance Company (HDFC Life) is a non-listed joint venture subsidiary of Housing Development Finance Corporation (HDFC) Ltd in association with Britain's Standard Life.

The company's net profit (based on IGAAP standards) was at Rs 120 crore in the same period last fiscal. "New business premium was at Rs 1,264 crore during the quarter under review, down 8 per cent, from Rs 1,368 crore in the year-ago period," HDFC Ltd said in a BSE filing. The renewal premium were at Rs 2,316 crore, up 3 per cent, from Rs 2,254 crore a year ago. While, the total premium during the stated quarter rose by 1 per cent to Rs 3,581 crore as against Rs 3,632 crore, the company said.

The assets under management (AUM) stood at Rs 71,575 crore at the end of December 2015, up 13 per cent, from Rs 63,506 crore in the same period a year ago. HDFC holds 70.65 per cent and Standard Life holds 26 per cent of equity in the joint venture, while the rest is held by others. As per an agreement in August 2015, HDFC Ltd had entered into a share sale deal with Standard Life to sell an additional 9 per cent of its stake in HDFC Life to the UK based partner.

The transaction is subject to regulatory approval. Post completion of the stated transaction, HDFC will hold 61.65 per cent stake in the insurance joint venture HDFC Life, while that of Standard Life's stake will increase to 35 per cent. Rest will be held by others. A Cabinet Committee on Economic Affairs (CCEA) will take call on the Rs 1,705-crore investment proposal related to transfer of HDFC shares to the Standard Life in the unlisted joint venture.